PSP Projects
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
PSP Projects has demonstrated strong execution capabilities, particularly with the ramp-up of Adani project execution, which is expected to drive revenue growth. Management's guidance for a 34% revenue CAGR over FY26-28E, supported by a robust order book of INR 132.5bn, indicates significant revenue visibility and potential margin expansion to 7-8% as execution normalizes. However, the heavy reliance on Adani Group projects introduces concentration risk, and rising employee costs could pressure margins. Vista's financial outlook reflects stable revenue growth and margins, with a fair valuation aligned with intrinsic value. The positive macro environment for Indian equities, coupled with government initiatives in infrastructure, supports this outlook. Over the next 12-24 months, key opportunities include expansion into new sectors and leveraging the Adani partnership, while watchpoints include managing client concentration and potential cost pressures
Why We Like This Stock
- Strong order book providing 4.1x revenue visibility and significant growth potential
- Management's positive outlook for EBITDA margin expansion as execution normalizes
- Strategic expansion into new sectors like data centers and hospital projects
Things To Watch Out For
- Heavy reliance on Adani Group projects poses a concentration risk
- Rising employee costs could pressure profit margins
- Potential regulatory scrutiny due to new related party transaction frameworks
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,506 | 2,512 | 3,149 | 3,688 | 4,652 |
| Profit Before Tax (Cr.) | 168 | 83 | 75 | 105 | 140 |
| PBT Margin | 6.7% | 3.3% | 239.4% | 2.9% | 3.0% |
| Net Profit (Cr.) | 116 | 50 | 39 | 79 | 105 |
| Earnings Per Share | 29.4 | 12.6 | 9.9 | 20.0 | 26.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 885 | 04-May-2026 |
| Elara Capital | ▲ Buy | 1,182 | 31-Jul-2026 |
| ICICI Securities | ► Hold | 790 | 02-May-2026 |
| Prabhudas Liladhar | ► Accumulate | 1,062 | 31-Jul-2026 |
Company Overview
Show Company Profile
PSP Projects Limited, a construction company, provides construction and allied services for industrial, institutional, commercial, residential, hospitality, hospital, and landmark government projects in India. It constructs industrial buildings for pharmaceutical plants, food processing units, engineering, manufacturing and processing facilities; and buildings for hospitals and healthcare services, educational institutes, shopping malls, hospitality services, and corporate offices. The company also undertakes government projects and government residential projects; and constructs buildings for group housing and townships and bespoke luxury homes, as well as independent residences for select private customers. In addition, the company designs, civil works, MEP (mechanical, electrical, and plumbing) services, façade development, interior fit-outs, and allied offerings. PSP Projects Limited was incorporated in 2008 and is headquartered in Ahmedabad, India.